HELB CEO: 40% of Student Loan Disbursements Get Returned Due to Wrong Details
The Higher Education Loans Board (HELB) CEO, Charles Monari, has revealed that a significant number of student loan disbursements fail due to incorrect details provided by beneficiaries.
While speaking before the National Assembly Education Committee on Thursday morning, Monari highlighted that some students, especially those receiving funds via mobile money, often provide incorrect phone numbers, making it difficult for the board to complete transactions successfully.
According to Monari, many students frequently change their mobile numbers, leading to discrepancies between the contact details they used during the loan application process and those available at the time of disbursement.
As a result, up to 40% of the funds sent through mobile money are returned to the loans board.
“We have enabled students to receive their funds via mobile money, but one of the major challenges we face is that many of them keep changing their phone numbers,”
Monari explained. “When they apply, they use one number, but by the time we send the money, they have switched to a different one.
This results in a large portion of the funds being returned, forcing us to wait until they provide the correct details before we can send the money again.”
To address this issue, Monari stated that HELB has implemented a robust communication system aimed at ensuring smooth coordination between students and the board.
He assured lawmakers that every student is notified through an official SMS when their funds have been disbursed, minimizing confusion and ensuring they are aware of their loan status.
His remarks came just a day after HELB disbursed Ksh1.56 billion in tuition and upkeep loans to university students. The board confirmed that all beneficiaries were notified through its official communication channels.
Education Cabinet Secretary Julius Ogamba, who spoke on Tuesday, March 18, disclosed that a total of 33,863 university students had received financial support in the latest round of disbursements.
With this allocation, HELB has now disbursed a total of Ksh32.7 billion for tuition and upkeep in the 2024/2025 Financial Year, benefiting 390,612 university students across the country.
“This funding is crucial in ensuring that students and trainees can meet their financial needs, allowing them to continue with their academic, training, and research programs without unnecessary disruptions,” Ogamba stated.
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